PCLN ==> The Arbor Day Winner

[mystiky]

Congrads Ernie! I hope your 281.48 sell got filled

[jiesen]

nothing wrong with taking a profit!

you're right, stiky, and I'm out at 278 with a 14% gain. Not gonna risk it for an extra buck or two... I'm very happy with 14%!

Thanks for the awesome pick, $$MM!!! You are HUUUUUUUUUGE!

[mystiky]

Maybe...but it's temporary. I will wait this one out.

Looks like PCLN may hit that $281+ sooner rather than later. But I still think that a revisit SPX to under 900 is coming. Taking profits in this market ain't a bad idea.

Good job to those whole held on. Even better to those who bought under $180.

[mrmarket]

Nice Earnings!

Priceline.com Reports Financial Results for 2nd Quarter 2010




Press Release Source: Priceline.com Incorporated On Tuesday August 3, 2010, 4:01 pm
NORWALK, Conn., Aug. 3 /PRNewswire-FirstCall/ -- Priceline.com Incorporated (Nasdaq:PCLN - News) today reported its financial results for the 2nd quarter 2010. Gross travel bookings for the 2nd quarter, which refers to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by consumers, were $3.4 billion, an increase of 43.3% over a year ago.
Priceline.com had revenues in the 2nd quarter of $767.4 million, a 27.1% increase over a year ago. The Company's international operations contributed revenues in the 2nd quarter of $322.6 million, a 63.3% increase versus a year ago (approximately 68% on a local currency basis). Priceline.com's gross profit for the 2nd quarter was $445.3 million, a 45.9% increase from the prior year. The Company's international operations contributed gross profit in the 2nd quarter of $321.8 million, a 63.6% increase versus a year ago (approximately 68% growth on a local currency basis). The Company's operating income in the 2nd quarter 2010 was $173.2 million, a 58.3% increase from the prior year. Priceline.com had GAAP net income for the 2nd quarter of $115.0 million or $2.26 per diluted share, which compares to $67.0 million or $1.38 per diluted share in the same period a year ago.
Pro forma EBITDA for the 2nd quarter was $204.2 million, an increase of 61.8% over the prior year. Pro forma net income in the 2nd quarter was $158.2 million or $3.09 per diluted share, compared to $2.02 per share a year ago. First Call analyst consensus for the 2nd quarter 2010 was $2.65 per diluted share. The section below entitled "Non-GAAP Financial Measures" provides a definition and information about the use of pro forma financial measures in this press release and the attached financial and statistical supplement reconciles pro forma financial information with priceline.com's financial results under GAAP.
"Second quarter performance by the Priceline group of companies was once again driven by strong growth in our global hotel reservations, where we believe we gained market share for another quarter," said Jeffery H. Boyd, Priceline's President and CEO. "The group achieved a combined 48% year-over-year growth in hotel room nights booked. International gross travel bookings increased by 59% compared to prior year, or 67% on a local currency basis, due to increasing travel demand and an improvement in room rates. Domestic gross travel bookings grew by 20% driven by strong growth in hotel reservations. Growth in airline tickets and domestic rental car days was modest as our Name Your Own Price® airline and rental car services were hampered by reductions in capacity by suppliers."
"In May 2010, we acquired TravelJigsaw, a growing international car hire service, which has contributed $43.9 million of gross travel bookings in the 2nd quarter since acquisition. The TravelJigsaw business showed continued growth in the second quarter and we look forward to working with the team to build the business."
Looking forward, Mr. Boyd said, "We are pleased with the hotel transaction growth we are seeing worldwide, which we believe is being driven by geographic expansion, solid execution in promoting improved conversion on our websites and benefits of group-wide cooperation on integration initiatives. These factors, combined with growing Internet commerce and travel in some of our newer markets, resulted in resilience in the face of economic volatility and periodic travel disruptions, and we believe provide a foundation for growth over the long-term."
The Company also reiterated its expectation that gross travel bookings growth rates would progressively decline in the second half of 2010 as it compares to periods of relatively stronger business performance in the 2nd half of 2009.
Priceline.com said it was targeting the following for 3rd quarter 2010:

• Year-over-year increase in total gross travel bookings of approximately 33% - 38%.
• Year-over-year increase in international gross travel bookings of approximately 46% - 51% (an increase of approximately 57.5% - 62.5% on a local currency basis).
• Year-over-year increase in domestic gross travel bookings of approximately 13%.
• Year-over-year increase in revenue of approximately 29% - 34%.
• Year-over-year increase in gross profit of approximately 43% - 48%.
• Pro forma EBITDA of approximately $327 million to $337 million.
• Pro forma net income of between $4.78 and $4.98 per diluted share.

Pro forma guidance for the 3rd quarter 2010:

• excludes non-cash amortization expense of acquisition-related intangibles,
• excludes non-cash stock-based compensation expense,
• excludes non-cash interest expense and gains or losses on early debt extinguishment, if any, related to cash settled convertible debt,
• excludes the impact, if any, of charges or benefits associated with judgments, rulings and/or settlements related to hotel occupancy tax proceedings,
• excludes non-cash income tax expense and reflects the impact on income taxes of certain of the pro forma adjustments,
• includes the additional impact of the pro forma adjustments described above on net income and loss attributable to noncontrolling interests,
• includes the anti-dilutive impact of the "Conversion Spread Hedges" (see "Non-GAAP Financial Measures" below) on diluted common shares outstanding related to outstanding convertible notes, and
• includes the dilutive impact of additional shares of unvested restricted stock, restricted stock units and performance share units because pro forma net income has been adjusted to exclude stock-based compensation.

In addition, pro forma EBITDA excludes depreciation and amortization expense, interest income, interest expense, equity in income and loss of investees, net income and loss attributable to noncontrolling interest, income taxes and includes the impact of foreign currency transactions and other expenses.
When aggregated, the foregoing adjustments are expected to increase pro forma EBITDA over GAAP net income by approximately $121 million in the 3rd quarter 2010. In addition, the foregoing adjustments are expected to increase pro forma net income over GAAP net income by approximately $38 million in the 3rd quarter 2010. On a per share basis, the Company estimates GAAP net income of approximately $4.06 to $4.26 per diluted share for the 3rd quarter 2010.

[billyjoe]

I was just doing some research on Priceline and it turns out my memory does not serve me well. I remembered that Wm. Shatner was paid in company stock over 10 years ago for doing PCLN commercials and that PCLN reached over 450/share in 1999 but plummeted below 25 by Nov. 2001.
Wikipedia says Shatner sold out before the crash and made millions. I thought he held on and made his money back. He's probably got another fortune in the stock this time around.

---------------billy

[mrmarket]

this recent volcanic action was like a gigantic orgasim. now it's spent and just wants to have a smoke and lay back.

LOL...feeling like a good cabernet right now myself.

[skiracer]

Ski.
Just watched a live feed on the Icelandic volcano seems its stopped dead in its tracks and is now steaming, good news really coz the last time it went off it went on for two years this means all flights and airports are back on again so with that and a bit of luck from the markets PCLN might just continue its trek back up. Hope you have all had a good w/end and the best to all for the coming week.
Nick.

this recent volcanic action was like a gigantic orgasim. now it's spent and just wants to have a smoke and lay back.

[mrmarket]

Ski.
Just watched a live feed on the Icelandic volcano seems its stopped dead in its tracks and is now steaming, good news really coz the last time it went off it went on for two years this means all flights and airports are back on again so with that and a bit of luck from the markets PCLN might just continue its trek back up. Hope you have all had a good w/end and the best to all for the coming week.
Nick.

For a bonus pick, who can pronounce the name of the volcano?

[microchips]

The bugger has gone to sleep!!!

Ski.
Just watched a live feed on the Icelandic volcano seems its stopped dead in its tracks and is now steaming, good news really coz the last time it went off it went on for two years this means all flights and airports are back on again so with that and a bit of luck from the markets PCLN might just continue its trek back up. Hope you have all had a good w/end and the best to all for the coming week.
Nick.

[skiracer]

ski, you didn't buy today??

not yet dmk. i'm waiting to see what it does on monday. but i think the govt sellling is close to coming to and end. but i do like it to the long side once that selling is finished.

[dmk112]

ski, you didn't buy today??

[skiracer]

C is another stock that I am watching. I mentioned that I had bought June 10/$4 puts a couple of weeks ago on the premise that I thought the govt selloff would pull the price down and I was looking for a bottom somewhere around $3.25 / 3.50 range. Well it got as low at $3.54 yesterday and recouped .26 of that with today's bounce. Will it hold this level is another question? I think the govt selling will continue to effect the downward pressure and will bring the stock further down but if the markets continue with today's strength and move farther up this coming week it will slow the downward slide in C considerably and the govt might get all their shares out over that period of time which would then give a green light to get back on board. Realistically C is a major player and it is very cheap right now if you think about it. Initially I was looking for $3.50 for a long entry and I still think I will get that. Maybe not $3.25 though and $3.50 is really cheap for this stock so if I see $3.50 or so I wouldn't want to miss out on that price waiting for another .25 to $3.25. $3.50 would be real good. Here's a 60 min chart showing the action over the past 11 days and the continuing drop in price.


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And here is the weekly showing some support and resistance points


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[skiracer]

Well if you owned PCLN in any way except for puts or a short position you had to feel better for the way it finished the week. Back over $190 after being at $250.40 on May 11th and dropping to $176.77 on May 21st. That's $73.63 pts. or 29.4% in 10 days.
It closed today +$10.24 or up 5.6% but still down $58.90 or 23.5% from it's May 11 high. Here's a couple of charts on the recent action and what we might expect next week. The 1st chart is the 60 minute and it will give a pretty good picture of what has transpired from the high of $250.40 on May 11 to the low of $176.77 on May 21.


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the 2nd chart is the weekly and I will point out some levels of resistance and support after today action and what could be expected from the technical aspects of the chart.


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What to expect in the coming week? so much depends on the markets and how they track. if they track further upward the chances that PCLN will follow the market are good that it will move with the market. on the other hand if the markets continue down then expect PCLN to move down. Today was an exceptionally good day as it showed that there is still interest, belief, and strength in the stock itself. I was happy to see that the stock kept it's strength all day and didn't whipsaw up and down or sell off at the close. It closed at it's high of the day range which is a big positive for what might be expected next week. Alot is going to depend on the markets and what is going on in the world, especially Europe and Greece this coming week. The democrats,"financial reform" has passed and I think the selling from that is probably already built into the markets and stocks in general. Today was a good day built on investors, institutions, and hedge funds picking up some great bargains on good stocks. PCLN being one of them. It was a good day and offered reinforcement for those that believe there is some strength on stocks and the markets in general. I didn't buy any more calls but it would have been a good time to dabble with some more of those July 10 / $220 calls. There still might be time early Monday a.m.

[skiracer]

Gosh, I am really sorry to see this thing go lower and lower. I think that 160 is a possibility now, and if that doesn't hold, the 140 gap looks, gulp, realistic.

The markets are oversold now, and we could see a squeeze to the 195-200 level. But I doubt this see 220 anytime soon.

you just might be right mystiky. i thought it would have put a bottom in way before this. i was looking at the weekly myself filling that gap at the 140 level could be given valid consideration. 160 is definitely plausible. i'm hoping not though. the S&P upgraded it yesterday with a target of 220. i think 220 is also feasible. whether its more feasible than 160 remains to be seen as it is just about in the middle of the two right now. there has been alot of selling and yesterday was a killer. maybe we'll get a bounce today.

[mystiky]

Gosh, I am really sorry to see this thing go lower and lower. I think that 160 is a possibility now, and if that doesn't hold, the 140 gap looks, gulp, realistic.

The markets are oversold now, and we could see a squeeze to the 195-200 level. But I doubt this see 220 anytime soon.

mystky,
i would be interested in where you feel the bottom is.